Struggling with debt? Ask a debt advisor a question

StepChange_Pavan

Roddy77 wrote: »

Hi,

I have just received a statutory demand on an unsecured debt of around 6k, stating if the debt is not paid within 21 days they will file for bankruptcy. At the moment, my necessary outgoings outweigh my income, so I could only offer them a very small monthy payment plan. I can prove that my essential expenses are more than my income but was wondering if I should contact them with an offer, or if they are likely to pursue the debt through the courts? (which, to me, would seem pointless as I have no savings/assets/property/spare income!)

Many thanks in advance for youe help

Hi Roddy77 and thanks for your post.

It could be that your creditor is using the statutory demand as a collections tactic to try and get you to pay more money, especially if you don’t have any assets that they could claim from.

It’s important that you provide them with an up to date copy of your income and expenditure to show how much you have left over. Don’t offer them money that you can’t realistically afford especially if you are already struggling with your essential outgoings.

If you would like some more detailed advice on your situation you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan

gillespie684

Hi

My debts have spiralled out of control and I know have over £30,000 worth of debts mainly because I my min payments were so high I was living on my credit cards. I am also on maternity leave and my husbands wages got cut by almos £300 a month, a lot when you have as much debt as I do!!!!

I am paying reduced payments to my cards at the moment but I am still paying the full amount on my loans, I received a letter from MBNA saying that I needed to start paying £114 a month instead of £14 to stop my account from going into a default. I have considered doing a DMP with CCCS but the amount I pay is similar to what i am paying at the moment, however I cant affort to up the amount to £114, I have 3 cards with them between me and my husband how long will they allow me to make reduced payments? Should I do the DMP. How likely am I to get taken to court and get CCJ'S??? If I do the DMP with CCCS will I avoid the defaults on my account? I have cards with MBNA and Capital One also loans with a company called Fortis, Santander and Barclays bank....has anyone had any experience with them and a DMP???

Please help I am at the end of my tether and I feel like I am missing out on so much with my daughter because all I can think of is my debts.

I look forward to hearing from anyone
Gillespie684

StepChange_Pavan

channic3 wrote: »

Hi, I wonder if somebody can give me some advise as I am in a real mess right now.
I am currently in about £12k worth of dept and I feel deeply ashamed and angry at my self.

I am working and have been doing so with the same directors for the last 9 years and I have never been in this situation before. The problem started last year when my salary was reduced by £10k a year because the business was very slow and currently still is. I know that you may think I am crazy to still be here, and I guess I am, however please understand that I have known everybody very well for many years and also in my role I currently earn commission on top of my base. The problem is that there is very little commission to be earned at the moment, and I have stayed with the company only because I was assured that things will pick up, and I had no reason to doubt them as I have seen the business go through a bad patch and always pick up later.

I have asked my directors for more money as I also have a family and mortgage to pay, but even though I have asked time and time again, I get now answer or I am given the run around and it goes to show that you can not trust anyone, and being loyal and sticking around for others can be a dangerous thing.

Ok thats over here is the dept problem,

Loan £7500 which I took out a year ago for home improvements (now £5200 remaining)

Credit Card 1 £4000k (maxed out, this is how I have been surviving since my salary has been dropped)

Credit are 2 £2800k (same as above)

In addition I also have an Overdraft on my current account and I am currently about £500 overdrawn.

I know that this is completely stupid from my part to allow this to go on for so long, I have always been good with credit and never had this problem, until my pay check got slashed.

Please everbody, I really don’t need a lecture, and I am now actively looking to get out of this company asap and I am also prepared to take on part time work just to clear this dept off as quickly as possible.

Here is my current problem, based on the above dept and the current income I receive, am no longer in a position to pay my creditors in full as I have been doing. I am dreading the fact that I can foresee them writing to me and I don’t know what can happen from there.

Sorry for the essay, it is just I have been building this up for a while now and needed to give an insight on my dilemma.

Any advice will be appreciated.

Hi channic3 and welcome to the forum

You’ve already mentioned that you’re looking at ways to improve your situation such as taking on extra work which is a good idea to help clear your debts as quickly as possible.

I’d recommend that you put together a realistic income and expenditure using your current guaranteed income to show what you have leftover to offer to your creditors.

It’s difficult to say which debt solution will be most appropriate for you without knowing more information about your circumstances. If you’d like us to look at your situation in more detail you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

I hope this helps.

Kind regards,
Pavan

StepChange_Pavan

gillespie684 wrote: »

Hi

My debts have spiralled out of control and I know have over £30,000 worth of debts mainly because I my min payments were so high I was living on my credit cards. I am also on maternity leave and my husbands wages got cut by almos £300 a month, a lot when you have as much debt as I do!!!!

I am paying reduced payments to my cards at the moment but I am still paying the full amount on my loans, I received a letter from MBNA saying that I needed to start paying £114 a month instead of £14 to stop my account from going into a default. I have considered doing a DMP with CCCS but the amount I pay is similar to what i am paying at the moment, however I cant affort to up the amount to £114, I have 3 cards with them between me and my husband how long will they allow me to make reduced payments? Should I do the DMP. How likely am I to get taken to court and get CCJ'S??? If I do the DMP with CCCS will I avoid the defaults on my account? I have cards with MBNA and Capital One also loans with a company called Fortis, Santander and Barclays bank....has anyone had any experience with them and a DMP???

Please help I am at the end of my tether and I feel like I am missing out on so much with my daughter because all I can think of is my debts.

I look forward to hearing from anyone
Gillespie684

Hi Gillespie684 and thanks for your post.

It sounds as though you’d benefit from booking an appointment with us so that we can look at your situation as a whole and explore all of the solutions that are available to you.

You will still have the option to administer the DMP by yourself as there’s no obligation to go through us even if we give you advice. Some people find it easier to choose a DMP as some of the hassle is taken away from you.

Although you mention that you would be paying the same amount through a DMP, we would distribute your reduced payments between all of your creditors. This is so that you’re treating all of your creditors fairly rather than giving your loans preferential treatment by maintaining your minimum payments.

If you’re not maintaining your minimum payments on any of your debts, they can issue you with a default notice at any time. If your creditors are unhappy with the payments you are making they can apply for a CCJ.

However, you have already done as much as you can if you provide them with a copy of your income and expenditure and a list of all your creditors. This will show them that you can’t afford to pay them any more, and even if they did apply for a CCJ it’s unlikely that you will be made to pay any more than you already are.

If you would like us to look at your situation in more detail you can either use our online advice facility Debt Remedy, or ring our free Helpline to book a telephone appointment with a counsellor.

Debt Remedy will assist you in completing a financial statement which includes information on your household, employment, income, expenditure and debts. All this information is used as a basis to determine the options available to you to deal with your situation.

Once you’ve followed the process through and completed all the required information you will immediately be presented with an advice booklet, which will provide tailored advice for you based on your current circumstances. It will also provide advice on ways you may be able to improve your situation.

Alternatively if you would prefer to talk to a debt counsellor about your situation, you can book a telephone based appointment by calling our helpline free on 0800 138 1111. Lines are open Monday to Friday 08:00-20:00.

Kind regards,
Pavan

crolkuk

I had a 2K debt with Wonga which they took from a secondary debit card I had registered with them but unfortunately forgotten about. Before that happened I had written to them to inform them I was entering into a DMP, had also emailed to say that I would not be able to pay off the debt due, and CCCS had also written their formal letter with offer of monthly payments. The problem is, the 2K wasn't my money! It was a savings account that I and some of my friends paid into. I rang Wonga and went through it all, this was on 18 February. Nearly 5 weeks later and I am still trying to get some sense out of them. I've called and emailed and whilst those I've spoken to have been pleasant they say I must deal with their Head Office. Unfortunately, their Head Office don't give out a phone number, they have to phone me and I've missed 2 calls from them. The first monthly payment from CCCS will be made to Wonga this Friday - I'll be interested to see what they say. I'm hoping they accept the payment - as they took £2K from my account I actually don't owe them anything - and if they accept the payment from CCCS it will give me some leverage. However, as I said, the money wasn't mine and now I'm worried sick about it. I have explained to my friends who have all, without exception, been great about it but as 2 of them work in the Fraud Squad they are not best pleased with Wonga and have asked me to obtain copies of all emails and recordings of phone conversations as they are going to take it further. From my experience of Wonga I don't hold out any hope of getting my money back, anyone got any views/comments? (Apart from telling me what a twit I was to leave that account open with them.....)

gillespie684

Hi Pavan

Thanks for the info so far, can you tell me how likely it is for ccj's? Do most creditors accept DMP's? I have filled in the debt remmedy form and it suggest I make a monthly payment of £380.00 I feel that I would struggle paying this amount, Is it possible to reduce it? How long will my creditor allow me to do the DMP?

Thanks

kathleenbrennan

Hi,

I just went through the CCCS online tool and received my booklet. It suggests a DMP but there's a few things I'm confused about:

1. It states my monthly contractual payments as £529 but I calculated them as £389... I went back through the tool but I can't amend those figures, does this mean that the advice is incorrect for my situation?

2. I am advised to change my bank account, however, it is a condition of my personal loan that I stay with this account as my main one until the loan is paid off or the bank can request payment in full. Does the DMP take this into account?

3.Will being on a DMP affect my credit rating? I've recently met a wonderful new partner after 8 years with a man who treated me very badly (not his fault, he turned out to have undiagnosed bi-polar disorder) and we are hoping to rent together at the end of this year. I don't want to be credit checked and refused when we are looking for a house.

4. How do I know how much spare income I will have after paying everything each month on this plan? Again, I need to save up for a deposit to move in with my partner.

5. I can afford to pay my personal loan, it's just the credit cards that have become a problem. Is it possible to continue the loan payments and enter into a DMP for the credit cards only?

6. I entered that I am behind on some of my household bills in the online tool. I moved into a new house in December and my house-mate pays the bills quarterly. I was stupid and used the money I should have set aside for bills on credit card payments. I now owe him about £175, which I can just about afford to pay him next month, if I don't put the usual amount of money away for car costs and cut back on my food bill this month (which should be fine because my partner will be away for 3 weeks). Is the advice affected because it assumes I can't pay the arrears?

Sorry for so many questions but I really need to know this is the best possible route for me before taking it on.

K

StepChange_Pavan

crolkuk wrote: »

I had a 2K debt with Wonga which they took from a secondary debit card I had registered with them but unfortunately forgotten about. Before that happened I had written to them to inform them I was entering into a DMP, had also emailed to say that I would not be able to pay off the debt due, and CCCS had also written their formal letter with offer of monthly payments. The problem is, the 2K wasn't my money! It was a savings account that I and some of my friends paid into. I rang Wonga and went through it all, this was on 18 February. Nearly 5 weeks later and I am still trying to get some sense out of them. I've called and emailed and whilst those I've spoken to have been pleasant they say I must deal with their Head Office. Unfortunately, their Head Office don't give out a phone number, they have to phone me and I've missed 2 calls from them. The first monthly payment from CCCS will be made to Wonga this Friday - I'll be interested to see what they say. I'm hoping they accept the payment - as they took £2K from my account I actually don't owe them anything - and if they accept the payment from CCCS it will give me some leverage. However, as I said, the money wasn't mine and now I'm worried sick about it. I have explained to my friends who have all, without exception, been great about it but as 2 of them work in the Fraud Squad they are not best pleased with Wonga and have asked me to obtain copies of all emails and recordings of phone conversations as they are going to take it further. From my experience of Wonga I don't hold out any hope of getting my money back, anyone got any views/comments? (Apart from telling me what a twit I was to leave that account open with them.....)

Hi crolkuk and thanks for your post.

As you had previously registered this account you may have authorised them to take this payment.

Is the account that you registered with them in your sole name or are your friends named on this account too? You may have to prove that not all the money in the account belongs to you. You could contact Consumer Direct for further help with this.

I would recommend that you call our support team to make us aware of your situation. If the debt is already cleared it may not be worth making a payment to the account but we would need to discuss this in more detail with you.

Kind regards,
Pavan

saltnvinegar

Dear Lovely CCCS people

I was posting some advice to someone on here last week, who mentioned that they were not keen to take a DMP with the CCCS as they had been told that the CCCS no longer wrote to creditors on behalf of debtors on DMP's.

Could you clarify the position please as I wouldn't want to give incorrect information!

Best

SnV

StepChange_Pavan

gillespie684 wrote: »

Hi Pavan

Thanks for the info so far, can you tell me how likely it is for ccj's? Do most creditors accept DMP's? I have filled in the debt remmedy form and it suggest I make a monthly payment of £380.00 I feel that I would struggle paying this amount, Is it possible to reduce it? How long will my creditor allow me to do the DMP?

Thanks

Hi there,

It’s very difficult to say how likely it is that you will receive any CCJs as all cases vary. Whether your creditors accept your DMP or not, we will continue to send the payments as you can’t afford to offer any more at this stage.

Like I mentioned before, you have already done as much as you can by making them aware of the situation and offering them realistic amounts towards your debts.

The £380 is based on the figures that you input into Debt Remedy. If you feel that this figure is too high, it must mean that you’ve missed out some expenditure. You should be able to log back in to amend these figures or alternatively you can call our web support team who will be able to discuss any changes with you.

I hope this helps, but if you need any further advice, please give us a call.

Kind regards,
Pavan